diff --git a/README.md b/README.md
index c0a70621..c4aadb6d 100644
--- a/README.md
+++ b/README.md
@@ -23,6 +23,8 @@ npm install --save-dev css-loader
 
 <h2 align="center">Usage</h2>
 
+The `css-loader` interprets `@import` and `url()` like `requires`.
+
 Use the loader either via your webpack config, CLI or inline.
 
 ### Via webpack config (recommended)
@@ -88,7 +90,7 @@ To be compatible with existing css files (if not in CSS Module mode):
 |**`camelCase`**|`false`|Export Classnames in CamelCase|
 |**`importLoaders`**|`0`|Number of loaders applied before CSS loader|
 
-This webpack config can load CSS files, embed small png images as Data URLs and JPG images as files.
+The following webpack config can load CSS files, embed small PNG/JPG/GIF/SVG images as well as fonts as [Data URLs](https://tools.ietf.org/html/rfc2397) and copy larger files to the output directory.
 
 **webpack.config.js**
 ```js
@@ -100,12 +102,11 @@ module.exports = {
         use: [ 'style-loader', 'css-loader' ]
       },
       {
-        test: /\.png$/,
-        use: { loader: 'url-loader', options: { limit: 100000 } },
-      },
-      {
-        test: /\.jpg$/,
-        use: [ 'file-loader' ]
+        test: /\.(png|jpg|gif|svg|eot|ttf|woff|woff2)$/,
+        loader: 'url-loader',
+        options: {
+          limit: 10000
+        }
       }
     ]
   }
diff --git a/lib/loader.js b/lib/loader.js
index 561cf5a1..edf273fd 100644
--- a/lib/loader.js
+++ b/lib/loader.js
@@ -2,7 +2,6 @@
 	MIT License http://www.opensource.org/licenses/mit-license.php
 	Author Tobias Koppers @sokra
 */
-var path = require("path");
 var loaderUtils = require("loader-utils");
 var processCss = require("./processCss");
 var getImportPrefix = require("./getImportPrefix");
@@ -97,13 +96,9 @@ module.exports = function(content, map) {
 			map = result.map;
 			if(map.sources) {
 				map.sources = map.sources.map(function(source) {
-					source = source.split("!").pop();
-					var p = path.relative(query.context || this.options.context, source).replace(/\\/g, "/");
-					if(p.indexOf("../") !== 0)
-						p = "./" + p;
-					return "/" + p;
+					return source.split("!").pop();
 				}, this);
-				map.sourceRoot = "webpack://";
+				map.sourceRoot = "";
 			}
 			map.file = map.file.split("!").pop();
 			map = JSON.stringify(map);
diff --git a/test/sourceMapTest.js b/test/sourceMapTest.js
index 9c29729a..39401e95 100644
--- a/test/sourceMapTest.js
+++ b/test/sourceMapTest.js
@@ -21,8 +21,8 @@ describe("source maps", function() {
 			file: 'test.css',
 			mappings: 'AAAA,SAAS,SAAS,EAAE',
 			names: [],
-			sourceRoot: 'webpack://',
-			sources: [ '/./folder/test.css' ],
+			sourceRoot: '',
+			sources: [ '/folder/test.css' ],
 			sourcesContent: [ '.class { a: b c d; }' ],
 			version: 3
 		}]
@@ -38,8 +38,8 @@ describe("source maps", function() {
 			file: 'test.css',
 			mappings: 'AAAA,SAAS,SAAS,EAAE',
 			names: [],
-			sourceRoot: 'webpack://',
-			sources: [ '/../../folder/test.css' ],
+			sourceRoot: '',
+			sources: [ '/folder/test.css' ],
 			sourcesContent: [ '.class { a: b c d; }' ],
 			version: 3
 		}]
@@ -55,8 +55,8 @@ describe("source maps", function() {
 			file: 'test.scss',
 			mappings: 'AAAA,SAAS,SAAS,EAAE',
 			names: [],
-			sourceRoot: 'webpack://',
-			sources: [ '/./folder/test.scss' ],
+			sourceRoot: '',
+			sources: [ '/folder/test.scss' ],
 			sourcesContent: [ '.class { a: b c d; }' ],
 			version: 3
 		}]